Oil continues its slide, dropping significantly in the last two days. It rose briefly last week after reacting to the OPEC production cuts taking effect, and then, alas for Iran and Venezuela, it’s dropping again due to a higher than expected U.S. inventory, and a lower than expected demand for the month.
Nov. 6 (Bloomberg) — Crude oil fell for a second day, tracking equity prices, on signs that demand for fuel will be eroded as the global economy slumps.
Crude fell as much as 2.5 percent in New York as global stock markets dropped. The MSCI World Index lost 2.5 percent in London while Europe’s Dow Jones Stoxx 600 Index declined 4.1 percent. Gasoline supplies in the U.S., the world’s largest energy user, unexpectedly rose 1.12 million barrels to 196.1 million barrels last week, an Energy Department report showed.
“There still seems to be a high correlation with equities, which seem to be a clear indicator for the state of the economy, and the crude price,” said Andy Sommer, an analyst with HSH Nordbank in Hamburg. “It looks like we are sticking in the range of $60 to $70 a barrel.”
And this is great news for those of us who loathe the Iranian mullahs. They need $100/bbl oil to sustain their current budget. Sucks to be them.
In the meantime, gas is $1.84/gallon at Sam’s Club here in Richmond.
I should have waited another day to fill my tank. Well, I’ll be driving Mom around the neighborhood, so I’m sure I’ll get the chance to get that $1.84 gas.
I like that price, $1.84 a gallon, haven’t checked here lately. It’s doubly nice seeing as it hits Iran in the pocketbook.
Good news indeed after the last few days of bad news, ie the election.
Don’t want it to go too low, though, because that interferes with energy production & efficiency programs. $50/bbl is probably OK; $30 would start messing things up.
$0.75 more than Richmond’s Sam’s Club in Westchester County, NY today.
chsw